Unit 1 Chapter 1 Review

What is “added value”?

• The process of hiring employees

• The difference between the cost of inputs and the selling price

• The total revenue a business earns

• The tax added to a product at each stage of production

What does “adding value” mean in a business context?

• Raising prices to increase profit

• Increasing the difference between inputs and the selling price

• Offering discounts on all items

• Increasing the number of workers

What is a “business plan”?

• A summary of a company’s past sales

• A written document that describes a business, its objectives, its strategies, the market it is in and financial forecasts

• A record of employee attendance

• A government regulation form

What are “capital goods”?

• Goods used by consumers directly

• Services provided by the government

• Physical goods used by industry to aid in production of other goods

• Stocks and bonds bought by investors

Who is a “consumer”?

• Someone who produces goods

• Someone who owns a business

• Someone who purchases goods or services for personal use

• Someone who hires employees

Tags

CCSS.RI.11-12.5

CCSS.RI.9-10.5

CCSS.RI.11-12.8

CCSS.RI. 9-10.8

CCSS.RI.8.8

What are “consumer goods”?

• Tools used in a factory

• Raw materials used in production

• Goods bought by businesses

• Physical and tangible goods sold to consumers

What are “consumer services”?

• Services sold by manufacturers

• Services provided to businesses

• non-tangible products sold to consumers that are not intended for resale

• Services that maintain production machinery

Who is a “customer”?

• An employee who handles sales

• A business manager

• A person or organization that buys goods or services

• A government official

Tags

CCSS.RI.11-12.5

CCSS.RI.9-10.5

CCSS.RI.6.5

CCSS.RI.7.5

CCSS.RI.8.5

Who is an “entrepreneur”?

• An investor who buys company stock

• A person who has an idea, starts the business, and assumes the risk of a business

• A manager working for a large company

• A consumer who buys new products

Tags

CCSS.RI.11-12.5

CCSS.RI.9-10.5

CCSS.RI.6.5

CCSS.RI.7.5

CCSS.RI.8.5

What are “factors of production”?

• Company policies that reduce cost

• Resources needed by a business to operate (land, labor, capital, enterprise)

• Government tax rules

• Marketing strategies used by firms